A number of Wall Street veterans like Bear Traps Report author, Larry McDonald, think that markets might see some “disastrous and unimaginable” impacts in the near future. Another seasoned analyst, Larry Williams, believes the S&P 500 will shudder after July 28. Despite the pending doom edging toward traditional stock and equities markets, bullish crypto researchers believe the digital currency bitcoin will see the opposite trend going forward.
Wall Street Vets Predict Disastrous Market Outlook
It's safe to say that a lot of people are concerned about the global economy and the financial systems leveraged in the country they reside in. This is due to the fact that governments worldwide responded to the Covid-19 outbreak by shutting down a large portion of the economy.
Despite the economic downturn, central banks like the U.S. Federal Reserve has been on a money creation spree. This has bolstered traditional stock and equities markets, but veteran economists think that this current run can only last so long.
At press time, the three top U.S. composite indexes; Nasdaq, Dow Jones, and NYSE, are all down on Friday, alongside big tech stocks too like Apple. People think that stock markets are still not reflective of reality just yet, and a number of analysts believe a hard economic recession is looming in the backdrop. Wall Street veteran Larry McDonald recently explained that government intervention exacerbates the economy and he called monetary interventions a “cobra effect.”
“Basic economic assumptions, or structures, will turn out to be much more fluid than policymakers can anticipate. Therefore the results will be disastrous and unimaginable,” McDonald stressed.
The “cobra effect” McDonald is talking about refers to a time in India when there were too many venomous cobras in the streets. So back then, the Indian government paid people per cobra if they turned the snakes in to local officials. However, Indian policymakers finally figured out that citizens started breeding cobras for extra income.
“We believe we are at the early stage of the biggest cobra effect in the history of economics,” the author of the Bear Traps Report wrote on July 21. “As the massive monetary and massive fiscal stimuli (over $15T globally) conjoin to save the economy from a deflationary depression, they will cause instead a hyperinflationary economic collapse.”
McDonald is not the only Wall Street veteran who believes financial markets are headed for disaster. Renowned trading expert Larry Williams has actually predicted an exact date. Williams recently told CNBC's Jim Cramer that the S&P 500 will top in July but at the end of the month, specifically on July 28, the S&P 500 is in for some volatility.
Cramer explained the recent analysis Williams provided and said he thinks the well known trader might be onto something.
“The charts, as interpreted by the legendary Larry Williams, suggest the S&P could climb another 4% or 5% over the next two weeks, but come July 28, he expects the market to start rolling over,” Cramer said on the broadcast “Mad Money.” “Given that the expanded unemployment insurance benefits from Washington expire at the end of the month, well, I wouldn't be surprised” if he's right,” Cramer added.
Bitcoin Analysts Believe ‘It’s Hard Not to be Bullish Here’
Even though market analysts observing traditional stocks and equities expect an incoming dump, digital currency proponents expect crypto markets to move northbound. An “independent research boutique” that provides institutional investors with insight for today's markets, Nautilus Research, thinks bitcoin (BTC) looks bullish right now.
On July 23, Nautilus Research tweeted a BTC/USD chart that indicates a possible “bullish pattern.”
The same day, the popular Twitter account @thecryptocactus explained to his 14,000 followers that right now it's difficult to not be bullish.
“Hard not to be bullish here, as long as buyers defend this $9,500 level for the rest of the week ahead, I think we will be seeing a retest towards the local highs,” Cactus tweeted. No possible way to see this as bearish right now,” the individual added.
A number of other bitcoin proponents are very bullish about bitcoin's (BTC) price moving northbound in the near future. Investment strategist Lyn Alden recently published a research analysis of bitcoin, in order to explain why she is “currently bullish from a macro/generalist investor perspective, as part of a portfolio.”
Although, not everyone is so optimistic and some people believe we might be seeing a bull trap or fakeout. Bitcoin21.org analyst Eran Gadot explained on July 24, that BTC may see some trouble ahead.
“Bitcoin broke out of a bullish pennant, but a significant supply barrier ahead of it may present trouble for its uptrend,” Gadot wrote on Friday.
What do you think about the bullish optimism bitcoiners have right now as traditional markets may see disaster? Let us know what you think about this subject in the comments below.
M2 supply growth is bullish for Bitcoin because it increases liquidity in the economy. More money in circulation leads to higher investments in riskier assets like Bitcoin, as traditional investments like savings and bonds offer lower returns.
In the short term, Bitcoin's support between $56,000 and $57,000 is crucial. A break below $56,000, confirmed by a daily candle close, could lead to a swift drop to the next support zone between $51,000 and $53,000.
Based on our analysis, Bitcoin's price could fall to a low of $38,000 or reach a high of $85,000 by the end of 2024. By the end of 2025, we expect BTC to have hit a new all-time high (ATH) around $102,000, then drop close to $65,000 by the end of the year—which will become positive support for the crypto's price.
“Based on the current market trend, it is possible that bitcoin may reach up to $100,000 by the end of 2024 and could potentially surpass $200,000 by the end of 2025,” Collins said. Unfortunately, he said it's unlikely bitcoin's momentum in 2023 and 2024 will continue indefinitely.
According to analysis published by on-chain analytics firm CryptoQuant, there has been a steady rise in Bitcoin outflows from exchanges in recent weeks, in a trend that is typically seen as bullish. A smaller supply of BTC exchanges means that the cryptocurrency's price could rise if demand is maintained or grows.
Bitcoin has been the subject of many price predictions, some of them extreme. Notably, Cathie Wood, CEO of Ark Invest, predicted that bitcoin could reach an astounding $1.48 million by 2030. Obviously, the world's oldest cryptocurrency has come a long way since its first recorded price of less than a cent.
Bitcoin price could decline if $52,000 mark is taken
As of Monday, it is trading 6% lower at $54,585, having tested the daily support level at $52,266. If BTC closes below the daily support at the $52,266 level, it could continue to decline 4.7% to retest its next daily support at around $49,917.
Looking at Bitcoin's price history, halvings typically precede higher highs, followed by higher lows. If Bitcoin continues this pattern into 2030, the price could peak around 2029 or 2030. If Wood is correct and Bitcoin reaches $3.8 million, if you invested $1,000 in Bitcoin now, it would be worth $54,280 in 2030.
Conclusion. In the dynamic landscape of cryptocurrency, these ten coins, including TRON, Shiba Inu, Astar, Kaspa, Dogecoin, Stellar, Kava, Polygon, Cronos, and VeChain, present diverse potentials for reaching the $1 milestone in 2024.
Bitcoin Halving appears to be fueling the next bull run in 2024. Investing in the best altcoins can be rewarding as they offer diversification and potentially higher returns. However, it is important to approach the altcoin landscape with caution and do a thorough research.
So, who are the top holders of BTC? According to the Bitcoin research and analysis firm River Intelligence, Satoshi Nakamoto, the anonymous creator behind Bitcoin, is listed as the top BTC holder as of 2024. The company notes that Satoshi Nakamoto holds about 1.1m BTC tokens in about 22,000 different addresses.
While it was difficult to safely buy and store Bitcoin early in its history, investing in BTC is now safer than ever. Exchanges like Coinbase and Kraken are trusted by millions of investors and institutions around the world.
Scarcity driven by Bitcoin halving :Given the limited availability of bitcoins in the market caused by the halving every 4 years (a slash in rewards derived by mining a valid block of Bitcoin by the miners), there's considerable pressure from the demand side for this asset.
Some bitcoin proponents view the cryptocurrency as a hedge against inflation because the supply is permanently fixed, unlike those of fiat currencies, which central banks can expand indefinitely. However, after bitcoin plummeted amid stock market volatility in 2022, many experts questioned this argument.
Bitcoin Halving appears to be fueling the next bull run in 2024. Investing in the best altcoins can be rewarding as they offer diversification and potentially higher returns.
BTC is forming a bull flag-like pattern in 1hr time frame and it is holding an important trendline support so far. Currently, it is retesting the flag. If it maintains this retest level and bounces we can expect another upside movement up to the $68k level. Target:-...
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